MMP_4_POM Principles of Marketing Sample
1. Introduction of The Body shop
The Body Shop’s first retail outlet opened on April 2, 1976, in Brighton, Britain. Presently, the business operates upwards of 2,600 retail locations including over 60 European nations approximately perform different functions. The company primarily uses a franchise model to access stores in brand-new corporate settings to expand into international opportunities. The Body Shop is an internationally recognized British makeup brand with an appearance in over 50 nations. The Body Shop Businesses can be found in a variety of malls and retail centers. It’s very widespread all over the world. The very first exfoliating scrub came from The Body Shop. It may not have been made by the Himalayan range or Dior. In addition to the skincare routine, they gave me The Body Shop Sea salt Moisturizes Day Moisturizer. This was a freshman in college when it happened. They did not understand what this skin type was at the time. I keep in mind being uninterested in the product lines. At the current moment, they understand what will work best for their skin type.
2. The PESTEL Analysis
The Body Shop is subjected to a wide variety of triggers in its surroundings. The PESTLE Analysis will indeed be performed in the next section to figure out the effect of political, economic, socially constructed, technical, ecologic, and legal requirements on the company’s operational processes.
- Political
The political situation and security of the nations in which multinational companies operate are critical considerations. Political factors are made even more pertinent once they affect a territory within which The Body Shop has an Ethical Trading partnership (Zéman et al., 2019). Political upheaval or terrorist acts in a particular economy can indeed lead to the breakdown of the commercial relationship. Furthermore, trade limitations placed by democratic structures can have an impact on the industry’s economic ties.
- Financial
For transnational corporations with suppliers throughout the world, the rate of exchange is critical. The firm’s earnings from stores just outside of the euro currency must be converted into euros, and the numerous towns that supply additives for the cosmetic products have been reimbursed in their exchange rate. As a result, the swap rate has an important impact on the income statement.
- Social
Customers are becoming increasingly aware of the industries from which they purchase items as a consequence of healthy lifestyle choices such as the rising attention to social and ecological issues. Initiatives including such as Ethical Trading procurement of items and ingredients or a firm’s commitment to environmental stewardship can be decisive factors in a customer’s decision to select a specific business.
- Technology
Due to the openness and transparency among clients, the enhanced accessibility of the web seems to have an impact on the economy (Katsikeas et al., 2019). Furthermore, it provides communication between a firm’s different spots, particularly with the Reasonable Trade neighbourhoods with which the business conducts business.
- Environment
Environmental laws have been enacted in response to increasing worries about the planet’s vegetation and fauna.”In a stunning victory for animal rights activists, the UK current regime declared in 1999 that it would no longer grant permission to check beauty products or additives on living creatures.” Furthermore, energy demand affects a business because of increasing costs as well as limitations on permitted electricity usage (Tien et al., 2020). Environmental challenges in Ethical Trading community members, such as air movement exacerbated by climate change, have an impact on supply chain partners.
- Legal
Increasing medical issues are most likely to result in new laws and regulations regulating safe work practices, as well as regulating consumer protection laws. Another of this legislation prohibited refilling containers and bottles for purely cosmetic reasons.
SWOT analysis
| Strength | Weakness |
| ● Wide range of over 1,300 merchandise and a heritage of constant improvement in product wide range
● A very well store design and atmosphere attract customers. |
● Its product lines receive very few adverts.
● Due to the business channel, the owners have little authority. |
| Threats | Opportunities |
| ● The products make use of some magnificent raw resources sourced from all over the world.
● Law or problems throughout commerce with major countries can have a significant effect on its operations. |
● With increased awareness of organic and sustainable and environmental product lines, it has enormous growth potential.
● As the number of online purchasers grows, it can utilize its web page gateway for sales and free shipping, growing its pricing power. |
Table 1: SWOT analysis
(Source: created by researcher)
3. An overview of the industry competitor’s analysis
Whenever the Body Shop first opened its doors, the company was one of the industry’s single most important leading brands, and the company has since grown rapidly, with over 2,700 major retailers in 67 marketplaces attempting to sell over 1,300 product lines. The brand’s purpose is to enhance people’s careers by generating ecologically responsible and organic product lines. Further to that, the company’s differentiation strategy as a nationally and globally Sustainable company is strengthened by the large and powerful career advancement of social and environmental personal accountability via the support of different marketing campaigns (Rana et al., 2020). Ecco, Lush, and Craftsmanship are The Body Shop’s biggest competitors nationally and internationally. Fresh products and environmental legislation are also important to these manufacturers. Although Maybelline Nyc does not constitute the main rival, it represents a threat to The Body Shop because the company has begun to advocate against animal experiments as well as for ecological sustainability. This corporation has been well nationally and globally in the personal care industry and therefore also competes with The Body Shop.
Figure 1: The market segment of the company
(Source: Zéman and Bogdan, 2019)
4. Identify the company segments
The Body Shop offers a diverse range of product offerings at various price points that are aimed at unique socioeconomic levels of the real economy. Shower, as well as skincare products, beauty products, perfumery, make-up, and a male sexual line, are indeed the flagship product lines. Even though the financial and retail slightly elevated cosmetics and skincare product lines made with organic ingredients procured through the Society Fair Trade Curriculum, the merchandise is priced at narrow levels. Furthermore, the companies are outsourcing the majority of their fabrication but employ rigorous quality control procedures to safeguard the long-term viability of their additives. This is a critical point in comprehending the connection between pricing and quality (Jin et al., 2018). One of the company’s main competitors, for comparison purposes, is which targets different types of customers with a competitive pricing regulation, whereas The Body Shop uses a competitive pricing strategy while helping to ensure quality and cleanliness. The Body Shop sources its supplies from reasonable trade supply chain partners in 21 multiple countries, primarily third world countries, to achieve sustainable profitability of an organization that has a noticeable impact on the convention and exhibition society. And Indeed the Body Shop collaborates with a Bangkok-based mass production firm to manufacture their product lines, which are then transported throughout the part of the world with fewer greenhouse gas emissions and lower costs. The Body Shop is indeed a general merchandise business that has its very own marketing strategy and does business with other businesses. Each collective bargaining agreement with a business involves a morally acceptable correlation in which The Body Shop supplies goods, orientation, and key modern retail characteristics (Canavari et al., 2019). The Body Shop provides protection for each company by attempting to control equities and product lines, and they retain long-term relationships with both companies that collaborate to perform business.
5. 7P’s of the brand
5.1. Product
The Body Shop is a globally renowned company with over a thousand merchandise underneath the overarching framework. Its components include sesame inoculum oil as well as marula oil, and the company is genetically disposed of forward into constructing sustainable and environment and organic product lines (Tien, 2020). Its diverse range of products includes skin-type-specific products such as skin, oily, seborrheic dermatitis, skin problems, and skin problems. Product lines are indeed categorized by maturity levels, such as those for the millennial population, the fully mature population, the elderly, and those showing the very first effects of ageing.
5.2. Product branding
They constantly influence the purchase intention, product innovations, and announcements on community media to notify clients about what’s proceeding in their company so that clients always can keep track of what’s happening. It was straightforward – sustainably sourced and innately derived components from across the globe, in uncomplicated wrapping that could be easily refilled. Goods and elegance rites are designed for each and every skin, with the goal of making women feel good in their own skin rather than pledging to transform them into like different people.
5.3. Price
The Body Shop has aimed at women in vibrant urban metropolitan areas and the urban category who really are wellness, as well as elegance aware and, have a greater wage (Tien et al., 2020).
5.4. Place
It appears to believe in the franchise arrangement and has well-organized outlets with a tranquil environment to appeal to consumers. Products may also be purchased through the affiliate marketer’s broadcaster ‘The Body Shop At Residence’ in addition to retail stores (Wood et al., 2021). This network was formed in 1995 and by using it, advisors or distribution companies could enlist others to market and promote their products. Based on a recent analysis, the advisors did receive a 25% individual price break on the goods, and this circuit first was attempted in Brisbane before spreading to other regions of the world.
5.5. Promotion
The company operates its own webpage where it sells its merchandise (Thomas et al., 2019). It also maintains partnerships with some other e-commerce sites on which it offers its products. The formal site also provides periodic reports on its product lines, as well as promotional deals and reward systems.
5.6. Extra 3Ps
People
Due to the wide variety of ages in both classifications, the strategies of the firms are also broad. By the direction, the company has retail outlets all atop grey the globe.
Process
Only with the assistance of the product lines which the company offers, The Body Shop is capable of establishing a large base of devoted customers (Batzer, 2019). Natural oils are used to create the items. Their “Enliven and Not Utilize” advertising has gained traction. They want to improve all of their folks, goods, and the environment.
Physical evidence
The Body Shop has promoted its company in the commercial market through environmentally friendly and social candidacies. The product was affiliated with the Protect the Whales protest movement in 1987.
Figure 2: Revenue of the company
(Source: Statista.com, 2020)
6. Recommendations
● Proper promotion is required
The Body Shop has physical stores, a webpage, Facebook and Twitter accounts, and a mobile application that is available for tried-to-download. People can purchase personally or professionally, and they can verify product offerings available on the internet before visiting a department store. They constantly influence the purchase intention, product developments, and announcements on social media to update clients about everything that is proceeding in their product line so that consumers could always just stay abreast of what’s happening.
● Chemicals-free products
To be genuine, the term “Contaminant Gratis” is greatly exaggerated. Every substance in the universe is organic, from liquid to hydrogen peroxide. All of that is made of chemicals. In their product offerings, they use relatively secure, bacteriocin, and authorized components. Their compositions have been evaluated for passenger safety and comply with worldwide safety regulations. In terms of being organic or otherwise. They have been using natural fresh ingredients in the majority of their product lines, such as Organic Ingredients, Tree Chai Oil, and so on, with artificial components added to enhance the formulations. Individually, they believe that individuals should not anticipate 100% organic ingredients from any product because excipients are required to maintain the product and its effectiveness undamaged. Their advice is to consistently read the ingredient labels extensively and to choose the platform to promote, regardless of the manufacturer.
● Requires a better understanding of people
The management use such factors to determine their prices to compensate their distributors for the appropriate quantity.
Reference List
Zéman, Z. and Bogdan, A., 2019. Marketing strategy and building brand value on the Hungarian market. Ekonomicko-manazerske spektrum, 13(2), pp.1-9.
Katsikeas, C., Leonidou, L. and Zeriti, A., 2019. Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions. International Marketing Review.
Tien, N.H., Dana, L.P., Jose, R.J.S., Van Dat, N. and Duc, P.M., 2020. Analysis of McDonalds’ entry strategy into Vietnam market. International journal of advanced research and development, 5(3), pp.23-29.
Rana, S., Prashar, S., Barai, M.K. and Hamid, A.B.A., 2020. Determinants of international marketing strategy for emerging market multinationals. International Journal of Emerging Markets, 16(2), pp.154-178.
Jin, H. and Hurd, F., 2018. Exploring the impact of digital platforms on SME internationalization: New Zealand SMEs use of the Alibaba platform for Chinese market entry. Journal of Asia-Pacific Business, 19(2), pp.72-95.
Canavari, M. and Coderoni, S., 2019. Green marketing strategies in the dairy sector: Consumer‐stated preferences for carbon footprint labels. Strategic Change, 28(4), pp.233-240.
Tien, N.H., 2020. Analysis of Lotte’s market penetration strategy in Vietnam FMCG Industry. International journal of educational research and studies, 2(2), pp.20-23.
Tien, N.H., Jose, R.J.S., Mai, N.P., Dung, H.T., Oanh, N.T.H. and Phuoc, N.H., 2020. Digital marketing strategy of GUMAC and HNOSS in Vietnam fashion market. International journal of multidisciplinary education and research, 5(4), pp.1-5.
Wood, B., Williams, O., Nagarajan, V. and Sacks, G., 2021. Market strategies used by processed food manufacturers to increase and consolidate their power: a systematic review and document analysis. Globalization and health, 17(1), pp.1-23.
Thomas, V.J. and Maine, E., 2019. Market entry strategies for electric vehicle start-ups in the automotive industry–Lessons from Tesla Motors. Journal of Cleaner Production, 235, pp.653-663.
Batzer, E., 2019. Marketing strategies and distribution channels for foreign companies in Japan. Routledge.
Statista.com (2020). Revenue generated by The Body Shop in 2020, by region Available at: 14th December 2022 from: https://www.statista.com/statistics/871066/the-body-shop-revenue-by-region/
Sheth, J., 2021. New areas of research in marketing strategy, consumer behavior, and marketing analytics: the future is bright. Journal of Marketing Theory and Practice, 29(1), pp.3-12.
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